Divorced and under a pile of debt
Torrance mom needs to save less and concentrate on paying off her credit card and a home equity credit line, and consider selling her house.
After more than a year of calls to her bank, Nicole Rasmussen finally got a mortgage modification. But she still owes tens of thousands on a credit card and home-equity and car loans. (Photo Credit: Christina House, For The Times / October 28, 2010)
In the midst of a divorce and unable to afford her Torrance home, Nicole Rasmussen phoned her lender to ask for a mortgage modification. She phoned every week for more than a year.
She also called her congressman and a senator to seek their help. Then, in desperation, she and her ex-husband — who still jointly owned the home — stopped making the payments on their $475,000 mortgage.
It was the only way, she felt, that the bank would seriously consider her pleas for a modification.
"I didn't know what was going to happen," said Rasmussen, who was frightened that she and her 7-year-old daughter would be forced out of the home. "We were living in limbo."
The risk paid off. Several weeks ago Rasmussen finalized the loan modification on the three-bedroom, 1950s ranch-style house.
Grateful to be at home for the holidays, she now looks forward to trimming the three artificial Christmas trees in the house and baking snickerdoodle cookies with her daughter.
But the mortgage mess and divorce have rocked her finances.
Like millions of other Americans, Rasmussen, 38, is facing an uncertain financial future, even with the loan modification. The only thing that's certain this holiday season is that she will have to change her financial life.
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Money Makeover: Divorced and under a pile of debt - latimes.com
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